China's State-owned Enterprises between Profitability and Bankruptcy

Carsten A. Holz

After decades of declining profitability, China's industrial state-owned enterprises appear to be obsolete. This book utilizes extensive data and qualitative as well as quantitative analyses to examine the reasons for the decline in the profitability of these industrial state-owned enterprises, to determine their current profitability patterns across various dimensions, and to account for profitability gaps between these enterprises and those managed under other ownership forms. China's recent enterprise reform measures are also evaluated. A differentiated picture emerges that clarifies past developments and illuminates future prospects of the reform of industrial state-owned enterprises in China.

Table of contents

1.    Introduction
2.    Data

Part I.    Explaining the Reform Period Decline in Industrial SOE Profitability

3.    Tracing the Decline in Industrial SOE Profitability through the Profit and Loss Account
4.    The Impact of Competition and Labor Remuneratoin on Profitability
5.    The Impact of the Liability-Asset Ratio on Profitability

Part II.    Industrial SOE Profitability in Perspective

6.    SOEs versus Non-SOEs
7.    Profitability across Industrial SOEs
8.    Recent Industrial SOE Reform Policies

9.    Conclusions